Taylor Wimpey sees signs of improvement in mortgage lending

Published 30th Jun 2011

Housebuilder Taylor Wimpey said there were signs the mortgage drought may be easing, despite reporting a fall in house sales.

The number of homes it sold in the first half of 2011 declined by five per cent to 4,550.

However, the company's average selling price increase by £2,000 to £170,000 as it focused on maximising the value of each sale, thereby improving its profit margins.

Chief executive Pete Redfern described the performance as very pleasing.

While there were 'ongoing signs of incremental improvements' in mortgage lending, levels are still 'very restricted', the company said.

Taylor has helped 1,200 first-time buyers get on the property ladder through the Government's FirstBuy scheme, which sees the housebuilder and the state stump up the deposit between them.

The scheme was launched because lenders have demanded bigger deposits, which is making it harder for first-time buyers to get on the property ladder.

The group expects the housing market to remain stable for the rest of 2011 despite the economic uncertainty, adding that it was still on track to achieve double-digit operating margins in the UK in 2012. Taylor said it is continuing to buy land when it finds good deals.

Source: ' ThisIsMoney '

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